Budget Implementation Act, 2009 (S.C. 2009, c. 2)
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Assented to 2009-03-12
PART 5STABILITY AND EFFICIENCY OF THE FINANCIAL SYSTEM
Division 6Legislation Governing Financial Institutions
1991, c. 45Trust and Loan Companies Act
291. The Act is amended by adding the following after section 443.1:
Marginal note:Regulations — activities
443.2 The Governor in Council may make regulations respecting any matters involving a company’s dealings, or its employees’ or representatives’ dealings, with customers or the public, including
(a) what a company may or may not do in carrying out any of the activities in which it is permitted to engage, or in providing any of the services that it may provide, under section 409 and any ancillary, related or incidental activities or services; and
(b) the time, place and manner in which any of those activities are to be carried out or any of those services are to be provided.
292. The Act is amended by adding the following after section 527.8:
Orders to Exempt or Adapt
Marginal note:Order
527.9 (1) On the recommendation of the Minister, the Governor in Council may, by order,
(a) provide that any provision of this Act or the regulations shall not apply to a company, to Her Majesty in right of Canada or an agent or agency of Her Majesty or to any other person otherwise subject to the provision; and
(b) provide that any provision of this Act or the regulations applies to a company, to Her Majesty in right of Canada or Her Majesty’s agent or agency or to any other person subject to the provision only in the manner and to the extent provided for in the order, and adapt the provision for the purposes of that application.
Marginal note:Minister’s recommendation
(2) The Minister may make a recommendation under subsection (1) only if the Minister
(a) is of the opinion that the order would relate to
(i) the acquisition, holding, sale or other disposition of, or other dealing with, shares of a company by, or the transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency, or
(ii) the management of the business and affairs or the regulation and supervision of a company during the time that Her Majesty or Her Majesty’s agent or agency is acquiring, holding, selling or otherwise disposing of, or otherwise dealing with, shares of the company, or during the time that shares of the company are transferred or issued to Her Majesty or Her Majesty’s agent or agency; and
(b) is of the opinion — after considering measures other than an order under that subsection and after consulting with the Superintendent, the Governor of the Bank of Canada and the Chairperson of the Canada Deposit Insurance Corporation — that the order will promote the stability of the financial system in Canada.
Marginal note:Terms and conditions
(3) On the recommendation of the Minister, the Governor in Council may, by order, impose any terms and conditions relating to the acquisition of shares of a company by, or transfer or issue of shares of a company to, Her Majesty in right of Canada or Her Majesty’s agent or agency.
Marginal note:Repeal of order under subsection (1)
(4) The Minister may recommend the repeal of an order made under subsection (1) without regard to subsection (2).
Marginal note:Terms, conditions and undertakings
(5) From the time that Her Majesty in right of Canada or an agent or agency of Her Majesty acquires shares of a company to the time that the shares are sold or otherwise disposed of, the Minister may, by order, impose any terms and conditions on — or require any undertaking from — the company that the Minister considers appropriate, including any terms and conditions or undertakings relating to
(a) the remuneration of the company’s senior officers, as defined in section 509.01, and directors;
(b) the appointment or removal of the company’s senior officers, as defined in section 509.01, and directors;
(c) the payment of dividends by the company; and
(d) the company’s lending policies and practices.
Marginal note:Acquisition
(6) Despite Part X of the Financial Administration Act, the Minister or an agent or agency of Her Majesty in right of Canada may, on any terms and conditions imposed under subsection (3), acquire and hold shares of a company on behalf of or in trust for Her Majesty if, as a result of an order under subsection (1), the company may record in its securities register the transfer or issue of shares to Her Majesty or an agent or agency of Her Majesty.
Marginal note:Payment out of C.R.F.
(7) On the requisition of the Minister, there may be paid out of the Consolidated Revenue Fund the amount that the Minister or an agent or agency of Her Majesty in right of Canada is required to pay for the acquisition of shares under subsection (6) and any costs and expenses incurred in connection with the acquisition, holding, sale or other disposition of, or other dealing with, the shares.
Marginal note:Registration of shares
(8) Shares acquired under subsection (6) by the Minister or an agent or agency of Her Majesty in right of Canada shall be registered in the name of the Minister, agent or agency, as the case may be, in the company’s securities register if they are capable of being registered in it, and the shares shall be held by the Minister, agent or agency, as the case may be, on behalf of or in trust for Her Majesty.
Marginal note:Disposition by Minister
(9) The Minister may, at any time, sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.
Marginal note:Disposition by agent or agency
(10) An agent or agency of Her Majesty in right of Canada — at the request of the Minister, which may be made at any time — shall sell or otherwise dispose of shares acquired under subsection (6). The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.
Marginal note:Consideration by Minister
(11) If the Minister or an agent or agency of Her Majesty in right of Canada is holding shares of a company on behalf of or in trust for Her Majesty on the day that is two years after the day on which the shares were acquired, the Minister shall consider whether holding the shares continues to promote the stability of the financial system in Canada.
Marginal note:Mandatory disposition
(12) If the Minister, under subsection (11), considers that holding shares acquired under subsection (6) no longer continues to promote the stability of the financial system in Canada, the Minister — or, at the request of the Minister, the agent or agency of Her Majesty in right of Canada — shall take the measures that the Minister considers practicable in the circumstances to sell or otherwise dispose of the shares. The Surplus Crown Assets Act and section 61 of the Financial Administration Act do not apply to the sale or disposition.
Marginal note:Not a Crown corporation
(13) Even if the acquisition of a company’s shares under subsection (6) would otherwise cause the company to be a Crown corporation, as defined in subsection 83(1) of the Financial Administration Act, the company is not a Crown corporation for the purposes of that Act.
Marginal note:Statutory Instruments Act
(14) The Statutory Instruments Act does not apply to an order made under this section.
Definition of “shares”
(15) For the purposes of this section, “shares” includes any conversion or exchange privilege, option or right to acquire shares.
Coordinating Amendment
Marginal note:2005, c. 54
293. On the first day on which both subsection 213(3) of An Act to amend certain Acts in relation to financial institutions, chapter 54 of the Statutes of Canada, 2005, and section 281 of this Act are in force, paragraph 17(1)(i) of the Green Shield Canada Act is replaced by the following:
(i) Part XI, except sections 528.1 to 528.3, Parts XV and XVI, Part XVIII, except section 1016.7, and Parts XIX and XX.
Coming into Force
Marginal note:Order in council
294. Sections 270, 273, 277, 280, 283, 285, and 290 come into force on a day or days to be fixed by order of the Governor in Council.
Division 7Securities
Securities Regulation
Marginal note:Maximum payment of $150,000,000
295. (1) The Minister of Finance may make direct payments, in an aggregate amount not exceeding $150,000,000, to provinces and territories for matters relating to the establishment of a Canadian securities regulation regime and a Canadian regulatory authority.
Marginal note:Payments out of C.R.F.
(2) Any amount payable under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister of Finance, at the times and in the manner, and on any terms and conditions, that the Minister of Finance considers appropriate.
Marginal note:Agreements
296. The Minister of Finance may enter into any agreement respecting securities regulation with any province or territory.
Canadian Securities Regulation Regime Transition Office Act
Marginal note:Enactment of Act
297. The Canadian Securities Regulation Regime Transition Office Act is enacted as follows:
An Act to establish the Canadian Securities Regulation Regime Transition Office
SHORT TITLE
Marginal note:Short title
1. This Act may be cited as the Canadian Securities Regulation Regime Transition Office Act.
INTERPRETATION
Marginal note:Definitions
2. The following definitions apply in this Act.
“Advisory Committee”
« comité consultatif »
“Advisory Committee” means the advisory committee of participating provinces and territories established under section 5.
“Minister”
« ministre »
“Minister” means the Minister of Finance.
“participating province or territory”
« province ou territoire participant »
“participating province or territory” means any province or territory that informs the Minister of its willingness to participate in the establishment of a Canadian securities regulation regime and a Canadian regulatory authority.
“Transition Office”
« Bureau de transition »
“Transition Office” means the Canadian Securities Regulation Regime Transition Office established under section 3.
ESTABLISHMENT
Marginal note:Transition Office
3. (1) The Canadian Securities Regulation Regime Transition Office is established.
Marginal note:Status
(2) The Transition Office is not an agent of Her Majesty nor is it an entity governed by the Financial Administration Act, and its president, officers, employees, agents and mandataries, advisers and experts and the members of the Advisory Committee are not part of the federal public administration.
Marginal note:President
4. (1) The Governor in Council shall, on the recommendation of the Minister, appoint a president, or two co-presidents acting jointly, of the Transition Office, to hold office during pleasure.
Marginal note:Powers, duties and functions
(2) The president is the chief executive officer of the Transition Office and has control and supervision over the work, officers and employees of that office.
Marginal note:Acting president
(3) In the event of the absence or incapacity of the president or a vacancy in that office, the Minister may designate a person to act as president, which person may not act for a period exceeding 90 days without the Governor in Council’s approval.
Marginal note:Acting co-president
(4) In the event of the absence or incapacity of a co-president or a vacancy in that office, the Minister may designate a person to act as co-president, which person may not act for a period exceeding 90 days without the Governor in Council’s approval. The other co-president may act alone until another co-president is designated or appointed.
Marginal note:Interpretation
(5) In this Act, other than in subsections (1) and (3), “president” includes two co-presidents who hold office, or a co-president who acts alone under subsection (4), as the case may be.
Marginal note:Advisory Committee
5. (1) An advisory committee of participating provinces and territories is established within the Transition Office and consists of not more than 13 members.
Marginal note:Members
(2) The Governor in Council shall appoint, on the recommendation of the Minister, a member for each participating province and territory, from persons nominated by that province or territory, to hold office during pleasure.
Marginal note:Role
(3) The Advisory Committee’s role is to provide the president with advice on matters related to the Transition Office’s purpose.
Marginal note:Staff
6. The Transition Office may employ any officers and employees and engage the services of any agents and mandataries, advisers and experts that it considers necessary to carry out its purpose.
Marginal note:Conditions of employment — president and members
7. (1) The Governor in Council, on the recommendation of the Minister, shall determine the remuneration and allowances to be paid to the president and members of the Advisory Committee and any other conditions of their employment.
Marginal note:Conditions of employment — staff
(2) The Transition Office shall determine the remuneration and allowances to be paid to its officers, employees, agents and mandataries, advisers and experts and any other conditions of their employment or engagement, as the case may be.
Marginal note:Remuneration
(3) The Transition Office shall pay the remuneration and allowances determined under subsections (1) and (2).
Marginal note:Conflict of interest — president and members
8. (1) The president and the members of the Advisory Committee shall not accept or hold any office or employment, or carry on any activity, that, in the Minister’s opinion, is inconsistent with the performance of their duties.
Marginal note:Conflict of interest — officers and employees
(2) The officers and employees of the Transition Office shall not accept or hold any office or employment, or carry on any activity, that, in the president’s opinion, is inconsistent with the performance of their duties.
Marginal note:Immunity
9. No criminal or civil proceedings lie against the president, a member of the Advisory Committee or an officer or employee of the Transition Office for anything done or omitted to be done by that person in good faith under this Act.
PURPOSE AND POWERS
Marginal note:Purpose
10. The purpose of the Transition Office is to assist in the establishment of a Canadian securities regulation regime and a Canadian regulatory authority.
Marginal note:Duties
11. (1) In carrying out its purpose, the Transition Office shall
(a) develop a transition plan with respect to administrative and organizational matters, including those relating to human, financial, material and informational resources;
(b) consult with stakeholders, including Canadian capital market participants; and
(c) undertake any other activity that the Minister may direct.
Marginal note:Copy
(2) The Transition Office shall provide the Minister and each participating province and territory with a copy of the transition plan no later than one year after the day on which section 3 comes into force.
Marginal note:Capacity and powers
12. In order to carry out its purpose, the Transition Office has the capacity and the rights, powers and privileges of a natural person and, in particular, it may
(a) initiate, finance and administer programs and activities;
(b) expend any money it receives for its activities, subject to any terms and conditions on which it is provided;
(c) enter into contracts; and
(d) with the Minister’s approval, enter into any agreement with the government of a province or territory that the president considers necessary or advisable.
Marginal note:Information
13. The Transition Office shall inform the Minister regularly of its activities and its progress in carrying out its purpose.
FINANCIAL PROVISIONS
Marginal note:Maximum payment of $33,000,000
14. (1) The Minister may make direct payments, in an aggregate amount not exceeding $33,000,000, to the Transition Office for its use.
Marginal note:Payments out of C.R.F.
(2) Any amount payable under this section may be paid out of the Consolidated Revenue Fund, on the requisition of the Minister, at the times and in the manner, and on any terms and conditions, that the Minister considers appropriate.
Marginal note:Audit
15. The accounts and financial transactions of the Transition Office shall be audited annually by the Auditor General of Canada, and a report of the audit shall be made to the Transition Office and the Minister.
ANNUAL REPORT
Marginal note:Submission to Minister
16. (1) The president shall, within four months after the end of each fiscal year, submit a report of all of the Transition Office’s activities for that fiscal year, including its financial statements and the report referred to in section 15, to the Minister.
Marginal note:Tabling report
(2) The Minister shall cause a copy of the report to be tabled in each House of Parliament on any of the first 15 days on which that House is sitting after the Minister receives the report.
Marginal note:Report available to public
(3) After the report is tabled in Parliament, the Transition Office shall make it available to the public.
DISSOLUTION
Marginal note:Date of dissolution
17. (1) The Transition Office is dissolved three years after the day on which section 3 comes into force.
Marginal note:Change in date of dissolution
(2) Despite subsection (1), the Governor in Council may, by order and on the recommendation of the Minister, set a different date of dissolution, and that date is to be no later than four years after the day on which section 3 comes into force. The order shall be published in the Canada Gazette at least three months before the date of dissolution referred to in the order or if it is earlier, the date determined under subsection (1).
Marginal note:Statutory Instruments Act
(3) The Statutory Instruments Act does not apply to an order made under subsection (2).
Marginal note:Assets transferred
(4) On the Transition Office’s dissolution, any of its property that remains after the payment of its debts and liabilities, or after the making of adequate provision for the payment of its debts and liabilities, shall be transferred to Her Majesty in right of Canada or to any body that the Governor in Council may specify.
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